The Australian Department of Home Affairs has announced that there aren’t enough technical capabilities in order for them to implement a travel rule regarding cryptocurrencies. However, if this decision is made it will potentially be game-changing!
According to ZDNet, the Financial Action Task Force (FATF) is recommending that FinCEN wait before developing new technology for adoption.
Speaking on the same, Daniel Mossop, the assistant secretary of Australia Department of Home Affairs said, “I think it depends on the way that is implemented, so a technological solution that takes a lot of the legwork out of that would be a game-changer. (…) We are not at the point where, globally, there is such a technological solution.”
For years, the FATF has recommended that countries use an electronic travel rule to block criminals from accessing funds. The latest update on this idea comes from longtime discussions on new ways of preventing terrorism financing via digital means like more secure online banking platforms and mobile check-cashing apps which allow users without physical access cards for direct debiting against accounts held at participating banks or obtaining loans directly through these types Personal Finance Tools (PFT).
The Australian Transaction Reports & Analysis Centre CEO said she wants institutions like crypto businesses regulated by Austrac so there are appropriate frameworks set up around accountability measures including financial crime compliance standards as well asset recovery efforts after crimes occur.
Maybe Australia should look at crypto from a legal perspective. Well, Commissioner Cathie Armour thinks so, too. She said, “Is it as a separate category that they decide covers all digital assets? Or is it more identification of which digital asset might fit into the existing categories of financial products better?”
Australia’s Efforts Against Illicit Funding via Cryptos
Before the Department of Home Affairs could implement a travel rule, they had to take into account more factors.
However, it does not mean that we cannot adopt this in the near future once conditions are met.
In what could be a world-first, Australia’s Victoria Police has recently conducted an enormous cryptocurrency seizure tied to dark web drug bust after finding almost AUD 8.5 million ($6 million) worth in digital assets!
The police chief says they will continue their efforts against this new type of financing for criminal enterprises and other illegal uses but that it remains unclear how individuals might use cryptocurrencies themselves legally.
If the word from Australian authorities is anything to go by, the crackdown could just be the biggest ever conducted in Australian history.